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June 4, 2014 by · 1 Comment 

The “disruptive influence” of online video services will result in a steady erosion of the percentage of American homes subscribing to cable and satellite services, according to PricewaterhouseCoopers’ Global Entertainment and Media Outlook report released late Tuesday. The report predicted that conventional pay-TV penetration will fall from its high of 82 percent in 2009 to 77 percent by the end of 2018. The erosion of the pay-TV subscriber base was principally attributed to cord-cutting as consumers look to video services such as Netflix, Hulu, and Amazon Prime to replace traditional broadcast and cable programs. Cable TV will also face growing competition from satellite services with DirecTV expected to become the nation’s largest pay-TV operator, surpassing Comcast Corp., in 2016, according to the PwC report. The conclusion contradicts other studies that have presented dim outlook for satellite TV operators DirecTV and DISH because of their inability to bundle Internet and telephone services as cable operators do.